Echelon stumbles after posting wider Q2 net loss
Echelon Corporation (Nasdaq:ELON) shares are tumbling 16% after the company reported ahead of the opening a wider second quarter loss and lowered its full-year guidance. For the period ended June 30, net loss was $7.1 million, or $0.17 per share, compared to a net loss of $5.3 million, or $0.13 per share, for the same quarter a year earlier. For the full year, the San Jose, Calif.-based company expects revenues of $149 million, down from previous estimates of $178 million.
“Of course, we are disappointed to be reducing our revenue outlook for the year. This reduction is not related to projects that we have lost — we have not lost any of the opportunities in our plan — nor is it due to the macro-economic environment. It is simply due to utility decisions taking longer than we had forecast. That is the unfortunate nature of this newly emerging market — it is very hard to predict when decisions will be made,” said Ken Oshman, chairman and CEO, in a statement.
Shares of the electric utility manufacturer are at $10.53 at 10:56 a.m. ET, down $2.14 from Tuesday’s close. Shares have ranged from $9.91 to $32.49 during the past year.
For detailed price information and recent news stories about Echelon Corporation, click ELON.
